| 10-K |
| NRG ENERGY, INC. filed this Form 10-K on 02/29/2016 |
| Entire Document |
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The decrease in economic gross margin in the East region was driven by:
| | | | | | (In millions) | Lower gross margin due to a 27% decrease in coal generation as a result of prior year winter weather conditions and plant deactivations | $ | (324 | ) | Lower gross margin driven by a 7% decrease in PJM cleared auction capacity volumes primarily from unit deactivations, coupled with increased purchased capacity, partially offset by a 4% increase in PJM cleared auction capacity prices | (60 | ) | Changes in commercial optimization activities | (34 | ) | Lower gross margin due to market adjustments for fuel oil inventory | (8 | ) | Higher gross margin due to the EME acquisition in April 2014 | 121 |
| Higher gross margin for gas facilities due to a decrease in natural gas prices, partially offset by a 6% decrease in average realized energy prices, which reflect the impact of beneficial hedges | 55 |
| Higher gross margin due to new load contracts starting in June 2014 and lower supply cost | 50 |
| Higher gross margin primarily driven by a 9% increase in New York and New England hedged capacity prices offset by purchased capacity | 29 |
| Other | 10 |
| | $ | (161 | ) |
The decrease in economic gross margin in the West region was driven by:
| | | | | | (In millions) | Lower capacity gross margin due to a 17% decrease in price as a result of higher reserve margins driven by more competition in certain areas and the expiration of certain tolling arrangements, which were replaced with lower priced agreements | $ | (43 | ) | Lower gross margin due to the retirement of Coolwater | (21 | ) | Higher energy gross margin due to a 15% increase in volume driven by more available generation resulting from the expiration of certain tolling arrangements and a 39% decrease in gas prices, partially offset by a 27% decrease in energy prices | 11 |
| Higher gross margin due to the EME acquisition | 8 |
| Other | 3 |
| | $ | (42 | ) |
The increase in B2B economic gross margin was driven by:
| | | | | | (In millions) | Higher gross margin for the C&I business in 2015 due to higher supply costs incurred in early 2014 as a result of prior year winter weather conditions and lower supply costs in 2015 driven by lower natural gas prices | $ | 17 |
| Higher margin for the energy services business due to new contracts and new business | 4 |
| Lower gross margin from a decrease in customer usage due to customer mix | (3 | ) | Other | (1 | ) | | $ | 17 |
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